Arizona State Retirement System Reduces Investment in Westamerica Bancorporation
November 11, 2023
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Westamerica Bancorporation ($NASDAQ:WABC) is a financial services corporation headquartered in San Rafael, California. Westamerica is also the holding company for two subsidiary banks, Westamerica Bank and Central Valley Community Bank. Recently, the Arizona State Retirement System (ASRS) has announced its decision to reduce its investment in Westamerica Bancorporation. The decision by the ASRS to reduce its investment in Westamerica Bancorporation is likely to have a significant impact on the company’s financial performance in the coming years.
While Westamerica Bancorporation has been consistently profitable over the past few years, the potential loss of revenue from the ASRS could be difficult for the company to overcome. The company will need to focus on increasing its customer base and finding new sources of revenue if it is to remain competitive in the current market.
Share Price
This decision resulted in a 0.8% decline in WESTAMERICA BANCORPORATION stock, with the price opening at $46.8 and closing at the same price, down from the previous closing price of $47.1. This follows a trend of decreasing investments in the company, as other institutional investors have also cut back on their exposure to the stock. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Westamerica Bancorporation. More…
| Total Revenues | Net Income | Net Margin |
| – | 161.64 | – |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Westamerica Bancorporation. More…
| Operations | Investing | Financing |
| 113.7 | -631.29 | -320.26 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Westamerica Bancorporation. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 6.57k | 5.92k | – |
Key Ratios Snapshot
Some of the financial key ratios for Westamerica Bancorporation are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 9.1% | – | – |
| FCF Margin | ROE | ROA |
| – | – | – |
Analysis
GoodWhale conducted an analysis of WESTAMERICA BANCORPORATION‘s wellbeing, which was revealed by GoodWhale’s Star Chart. The Star Chart showed that WESTAMERICA BANCORPORATION is strong in growth, dividend, and medium in profitability and asset. This led us to classify WESTAMERICA BANCORPORATION as a ‘cheetah’, a type of company that has achieved high revenue or earnings growth but is considered less stable due to lower profitability. We believe that this type of company would be of interest to investors who are looking for capital gains rather than stability. However, despite its lower profitability, WESTAMERICA BANCORPORATION has a high health score of 10/10 considering its cashflows and debt, making it capable of safely riding out any crisis without the risk of bankruptcy. More…
Peers
The company’s primary subsidiary is Westamerica Bank, a regional community bank with over 80 branches and 2,000 employees serving customers in northern and central California. Westamerica Bancorp competes with other regional banks such as Eagle Bancorp Inc, Spar Nord Bank A/S, and CNB Financial Services Inc.
– Eagle Bancorp Inc ($NASDAQ:EGBN)
Eagle Bancorp Inc is a bank holding company that operates through its subsidiary, EagleBank. The company offers a range of banking products and services to businesses and individuals in Montgomery County, Maryland, and Washington D.C. As of December 31, 2020, the company operated 21 banking offices.
– Spar Nord Bank A/S ($LTS:0JH4)
Spar Nord Bank A/S is a Denmark-based bank engaged in the provision of banking products and services to retail, corporate and institutional customers. The Bank’s product range comprises current and savings accounts, loans, mortgages, credit cards, payment services, investments and pension products, as well as leasing, factoring and export financing. It also offers insurance products, such as motor, household, travel, life and health insurance. The Bank operates a branch network in Denmark and offices in Sweden, Norway, the Faroe Islands, Finland, Luxembourg and Germany.
– CNB Financial Services Inc ($OTCPK:CBFC)
CNB Financial Services Inc is a holding company for Citizens National Bank, which is a full-service bank that offers personal and business banking services. The company has a market cap of 22.29M and a ROE of -25.68%. The company operates in Pennsylvania, New York, and Ohio.
Summary
The Arizona State Retirement System recently lowered its stake in Westamerica Bancorporation, a regional financial services holding company. Analysts cited the company’s lower-than-expected earnings per share as a potential reason for the sale. Despite the setback, the company has been making progress in streamlining operations, and its financial assets are still stable.
Additionally, Westamerica has a long history of successful performance, and the bank is consistently ranked among the top regional banks by numerous financial publications. As such, investors may still find worthwhile opportunities within Westamerica’s stock. Nevertheless, with the recent decline in its share price, only experienced investors should consider investing in Westamerica.
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